ACIT, Kottayam V. The Mlamallay Tea Estate Ltd, Kottayam

ITA 376/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58188 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 06-01-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 04-06-2010
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: IYPE JOHN
• Section: 2(14); 115JB; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A. NO. 376/COCH/2010 ASSESSMENT YEAR: 2007-08 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1, KOTTAYAM. [PAN:AAACT 8662Q] VS. THE MLAMALLAY TEA ESTATE LTD., MLAMALLAY BUILDING, JETTY ROAD, KOTTAYAM.. (ASSESSEE-APPELLANT) (REVENUE-RESPONDEN T) ASSESSEE BY SHRI IYPE JOHN, CA REVENUE BY MS. S.VIJAYAPRABHA, JR. DR DATE OF HEARING 06/01/2012 DATE OF PRONOUNCEMENT 6 /01/2012 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 22.3.2010 PASSED BY LD CIT(A)-IV, KOCHI AND IT RELATES TO THE ASSESSMEN T YEAR 2007-08. THE SOLITARY ISSUE URGED IN THIS APPEAL IS WHETHER THE LD CIT(A) IS JU STIFIED IN HOLDING THAT THE PROFIT ON SALE OF AGRICULTURAL LAND IS NOT INCLUDIBLE IN THE COMPU TATION OF BOOK PROFIT U/S 115JB OF THE ACT. 2. THE FACTS RELATING TO THE ISSUE ARE STATED I N BRIEF. THE ASSESSEE EXCLUDED THE SURPLUS INCOME ON SALE OF AGRICULTURAL LAND FROM THE COMPUT ATION OF BOOK PROFIT MADE UNDER SECTION 115JB OF THE ACT. THE ASSESSING OFFICER, H OWEVER, ADDED THE SAME TO THE BOOK PROFIT AND ACCORDINGLY COMPUTED THE TAX. IN THE AP PEAL FILED BEFORE LD CIT(A), THE FIRST APPELLATE AUTHORITY DELETED THE SAME BY PLACING REL IANCE ON THE DECISION OF THIS TRIBUNAL I.T.A. NO.376/COCH/2010 2 IN THE CASE OF HARRISONS MALAYALAM VS. ACIT (2009) (315 ITR (AT) 1). AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 3. THE LD D.R SUBMITTED THAT THE PROVISIONS OF SEC. 115JB PROVIDES FOR EXCLUSION OF ONLY THOSE INCOME WHICH ARE EXEMPT U/S 10, 11 AND 1 2 OF THE ACT. HOWEVER, THE IMPUGNED SURPLUS ON SALE OF AGRICULTURAL LAND IS EX EMPTED FROM TAXATION IN VIEW OF THE PROVISIONS OF SEC. 45 R.W.S. 2(14) OF THE ACT. AC CORDINGLY SHE SUBMITTED THAT THE SURPLUS INCOME RECEIVED FROM SALE OF AGRICULTURAL LANDS IS INCLUDIBLE IN THE COMPUTATION OF BOOK PROFIT U/S 115JB OF THE ACT. 4. ON THE OTHER HAND, THE LD A.R PLACED RELIANC E ON THE ORDER OF LD CIT(A). 5. HAVING HEARD THE RIVAL SUBMISSIONS, WE NOTIC E THAT THE LD CIT(A) HAS FOLLOWED THE DECISION OF THIS BENCH, REFERRED SUPRA, IN DECIDING THE IMPUGNED ISSUE IN FAVOUR OF THE ASSESSEE. IN THE CASE OF HARRISONS MALAYALAM, SUP RA, THE ASSESSEE THEREIN SOLD RUBBER ESTATE AND THE TRIBUNAL, AFTER CONSIDERING VARIOUS PROVISIONS OF THE ACT, HAS HELD THAT THE SURPLUS INCOME ARISING ON SALE OF RUBBER ESTATE IS NOT INCLUDIBLE IN THE BOOK PROFIT. SINCE THE TRIBUNAL HAS ALREADY TAKEN A PARTICULAR VIEW IN THE IMPUGNED MATTER, WE ARE INCLINED TO FOLLOW THE SAME. FURTHER, SINCE THE LD CIT(A) HAS FOLLOWED THE ORDER OF THIS BENCH OF TRIBUNAL IN DECIDING THE IMPUGNED ISSUE, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE SAME. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED ACCORDINGLY ON 6.1.12 SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: ERNAKULAM DATED: 6TH JANAURY, 2012 I.T.A. NO.376/COCH/2010 3 GJ COPY TO: 1. THE MLAMALLAY TEA ESTATE LTD., MLAMALLAY BUILDIN G, JETTY ROAD, KOTTAYAM. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -1, KOTTAYAM. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-IV, KOC HI. 4. THE COMMISSIONER OF INCOME-TAX, KOTTAYAM. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE .